Luxshare Precision Industry Co Ltd Class A

002475: XSHE (CHN)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
¥53.00ZlqkBghdsjb

Luxshare Precision Still Undervalued Even If It Doesn't Reach Its 30% Growth Target; Keep FVE

We retain our CNY 47 fair value estimate on no-moat Luxshare before the firm reports full-year 2022 results and first-quarter 2023 results in late April. The company is undervalued, in our view, as it executes well on winning more Apple-related orders and proceeds to devote more effort to automotive and communications products. A possible catalyst is Apple’s highly anticipated augmented reality headset garnering favorable reviews and preorders in 2023.

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